Loan

THE ADVANTAGES OF PERSONAL LOAN THAT YOU SHOULD KNOW NOW

A lot of us have been in the situation that we want badly to buy something but we do not have cash in hand, while our usual and immediate reaction would use our credit card and charge it there while another option for us is to rely on personal loan which is considered the more traditional and overlooked financial aide to a lot of people.

We have talked to some financial planners that are experts in personal loans to talk about the advantages of the personal loan compared to credit card. Oftentimes, there are people who apply to a bank for a credit card grant because of the rewards and benefits or apply for a line of credit at a low-interest rate. Also, there are instances that people forget about the third option in terms of financing which is a personal loan.

ADVANTAGES

FIXED INTEREST- One of the most notable advantages of personal loan is its fixed interest rates that create a stable financial option for those who want to avail it. A personal loan provides you with a lump sum of money up front which gives you the chance to pay it back over a fixed term which usually lasts for a year or two depending on the amount that you loaned. Loan rates are usually negotiable, which is a big advantage if you want to choose a personal loan between a credit card. There is also a loan agreement that you have to sign so that you will have a fixed interest rate in the entire repayment period of your loan.

FIXED PAYMENT- This is also a huge advantage when it comes to personal loan because it is easier for you to create and set aside a budget. If you have a regular fixed payment on your personal loan you are actually making it easier for yourself to set and determine the budget for payments and bills compared to a credit card where your payments depend on the amount that you used every time you purchase something. This is very ideal for people who have a fixed income because personal loans remain the same in each paying date, this means that you do not have to worry about having to exceed the amount of payment on each payment date because it is already fixed to a certain amount.

LOW-INTEREST RATE- Personal loans have an incredible interest rate compared to credit cards. You do not have to pay 19-percent on a credit card interest. Personal loans have substantially low-interest rates compared to credit cards which are also negotiable with the financial institution that you have applied and availed of the personal loan. Regardless of the years that you availed in repaying your loan, the interest is already fixed and remarkably low.

EASY TO APPLY- Most financial institutions are not that strict when it comes to the requirements for applying for personal loans. All you need is to have all the needed documents such as your employment certificate, valid ID’s, documents that about your regular income and other personal documents that are always available on your disposal.

To learn more about personal loans, and other forms of loans, click on HittaSMSLan.com.